Circle shares slide 16.55% to $62 after removal from multiple Russell growth indexes
Circle (CRCL) shares fell 16.55% to $62 on June 27, after the stock was removed on June 26 from the Russell 1000 Growth, Russell 3000 Growth and Russell Midcap Growth indexes, prompting passive funds to cut holdings. At the same time, Open Standard launched its Open USD stablecoin with an alliance of 140 companies including Visa, Coinbase and BlackRock, potentially diverting interest income tied to USDC, which accounts for about 99% of Circle’s revenue. CEO Jeremy Allaire said USDC represented 80% of on-chain dollar stablecoin transaction volume, but investors have questioned the sustainability of Circle’s revenue model.